Bank of the Ozarks (OZRK 46.73) reported in-line earnings for the second quarter on above-consensus revenue.
The regional bank, which operates in the Southeastern United States, reported in-line second quarter earnings of $0.73 per share on a 64.8% year-over-year spike in revenue to $237.30 million, which exceeded market expectations. This report combines the results of the bank with the results of its former parent holding company, Bank of the Ozarks, Inc.
Return on average assets checked in at 1.90%, down slightly from 1.91% one year ago. Average common stockholders' equity was reported at 12.05%, down from 14.35% one year ago. Average tangible common stockholders' equity declined to 15.81% from 15.92% in 2016.
Total loans and leases jumped 56.1% year-over-year to $15.20 billion. Non-purchased loans increased 34.2% year-over-year to $11.00 billion. Purchased loans surged 174.5% to $4.16 billion, but decreased 9.2% on a sequential basis. Unfunded balance of closed loans rose 61.7% year-over-year to $11.90 billion.
Deposits increased 59.3% year-over-year to $16.20 billion while total assets grew 63.4% year-over-year to $20.10 billion.
Common stockholders' equity jumped 109.4% year-over-year to $3.26 billion while tangible common stockholders' equity spiked 80.9% to $1.41 billion. The ratio of common stockholders' equity to total assets improved to 16.25% from 12.68% one year ago. The ratio of tangible common stockholders' equity to total tangible assets improved to 13.15% from 11.60% one year ago.
Net interest income grew 69.8% year-over-year to $202.10 million while net interest margin on a fully taxable equivalent basis improved to 4.99% from last year's 4.82%. Non-interest income grew 40.1% year-over-year to $31.80 million.
The ratio of nonperforming loans and leases as percentage of total loans and leases (excluding purchased loans) ticked up to 0.11% from 0.09% one year ago. Nonperforming assets as a percentage of total assets (excluding purchased loans) ticked down to 0.23% from last year's 0.25%. The ratio of loans and leases past due 30 days or more, including past due non-accrual loans declined to a record of 0.15% from 0.22% one year ago.
Allowance for loan and lease losses increased in nominal terms, to $80.70 million from $63.90 million, but declined to 0.73% of total non-purchased loans and leases from 0.78% one year ago. The allowance for loan and lease losses for purchased loans increased to $1.60 million from $1.20 million one year ago.